Gambling is one of the few industries that grows despite challenging economic times.
The adrenaline rush and the body’s reward system keep gamblers wanting new experiences and higher earnings for those playing for money.
But what does this mean to businesses in the industry?
The Competitive Landscape
With a growing demand comes increased activity in the market. The old players are establishing themselves even more as startups seek to disrupt the market. There is increased competition especially from businesses pushing the penetration of mobile applications across different markets.
Innovations are also being used to differentiate between different players. The likes of Microsoft and Sony are pushing the boundaries with next-generation gaming consoles aimed at improving the gaming experience.
Online gambling has seen significant growth and it’s gaining traction in new markets. The use of smartphones and increased internet connectivity are working together to deliver double-digit growth numbers in online gambling.
The industry has quickly adopted technology to help it grow both in revenue numbers and improved customer experience. Here are some of the top technological solutions embraced by the gambling industry.
1. Use of Avatars
Most people on the internet want to keep their personal information private. Since avatars provide this opportunity, they have encouraged more gamblers to get into the game by simply providing a sense of added privacy and security.
2. Enhanced Audio/Visual Experiences
With improved display technology, gamers are being treated to high resolution graphics. To make the games as realistic as possible, game developers are integrating 4K resolution graphics with surround sound for online games.
3. Predictive Analytics
With virtual casinos going mainstream, game developers are gathering information beyond app downloads. Casinos are using information such as app usage and player preferences to learn more about their customers and improve their products.
4. Risk Analysis
Casinos have implemented technology to aid in analyzing player behavior and track betting patterns. This information is used to create player profiles for risk analysis and to determine how to set the winning odds and increase profitability.
Trends and Opportunities in the Gambling Industry
Industry players are looking for ways of attracting more customers. The opportunities being implemented include:
1. Using Cryptocurrency
Gambling businesses are adding cryptocurrency to their systems as a payment method. Although traditional payments are still accepted, there is a move towards crypto due to the advantages of anonymity and security.
2. Improving the Social Aspects of Gaming
Games are now coming with socialization. Players can make friends and build communities within the game thereby spending more time in the game. This provides an opportunity for increased revenue as well as collaboration for improving the gaming experience.
3. Gaming as a Service (GaaS)
Processing power is shifting from PCs and smartphones to cloud servers. The shift to cloud gaming is creating a highly-competitive environment even as the likes of Ubisoft, Epic Games and Warner Bros partner with GaaS platforms for game distribution.
The blockchain technology provides a huge opportunity of increasing revenue by attracting privacy-minded customers and eliminating fraud. With every transaction recorded on a distributed system, there is increased transparency, zero taxes as well as no third parties.
The Future of the Gambling Industry
The industry is adopting a skills-based approach for new offerings. These have the potential of attracting and keeping more customers in the game. Hybrid offerings are another option.
As society becomes more inclusive, the gambling industry could move in the same direction. This could see the inclusion of story lines representing people of different races and sexual preferences.
The North American and Chinese markets are growing and will remain leaders for some time. Other Asian countries will provide new markets even as Africa remains promising.
The Importance of Conducting Market Research
The gambling industry is unique in that it grows even when others register declining revenues. That however doesn’t mean a business can enter a new market blindly. The increasing competition demands an understanding of the market as well as a strategy which guarantees success.